INTRODUCTION
Buying a home for the first time can be overwhelming. Between saving for a deposit, securing a mortgage, and paying legal fees, the costs add up quickly. In Ireland, house prices and demand continue to rise, making it harder than ever for first-time buyers to get on the property ladder.
To help address this, the government has introduced several support schemes. These are designed to reduce the financial burden and help people take that important first step into homeownership. The most well-known include the Help to Buy Scheme, the First Home Scheme, and the Affordable Purchase Scheme.
Each scheme works differently. Some offer cash refunds, others provide equity support, and some give access to discounted homes. This guide breaks down what each one offers, who can apply, and how to decide which option is right for you.
HELP TO BUY SCHEME
The Help to Buy Scheme is a government initiative aimed at helping first-time buyers fund the deposit for a new home. It allows you to claim a refund of income tax and Deposit Interest Retention Tax (DIRT) that you’ve paid over the previous four years. This refund can be used towards the deposit on a newly built property or a self-build.
To qualify, you must be a first-time buyer. This means you and anyone else buying with you must not have owned a property before, either in Ireland or abroad. The home must be newly built, and you must live in it as your main residence. It must also be bought from a builder registered with Revenue under the scheme.
The maximum refund you can claim is the lesser of: 10% of the property value, €30,000, or the total tax you paid in the previous four years. For example, if you’re buying a house worth €250,000 and you paid €20,000 in tax over the last four years, you could get a refund of €20,000 towards your deposit.
Applying for the scheme is done through the Revenue website. You’ll need a verified MyAccount or ROS login, and you must be tax-compliant. The process includes entering your personal and tax information, details of the property, and confirming your eligibility. Once approved, the funds are paid directly to the builder (or solicitor, in the case of a self-build), reducing the amount you need to pay up front.
FIRST HOME SCHEME
The First Home Scheme is designed to bridge the gap between the price of a new home and the maximum amount a buyer can borrow. It’s not a loan. Instead, the government and participating banks offer an equity share in your home. In simple terms, they provide money up front in exchange for a percentage ownership stake in the property.
This scheme is available to first-time buyers and also to those who are separated or divorced and no longer have a financial interest in a previous home. To be eligible, the home you’re buying must be newly built and within the local price ceilings set for the area. The scheme supports both houses and apartments.
To qualify, you must also have mortgage approval for the maximum amount you’re eligible to borrow, usually up to four times your income. If there’s still a shortfall between your loan and the home’s price, the scheme may cover up to 30% of the property’s value (or 20% if you’re also using the Help to Buy Scheme).
There is no interest charged on the equity stake for the first five years. From year six onward, a service charge applies. This starts at 1.75% and increases slightly over time. You can repay the government’s share at any point, either in part or in full, typically when you sell, remortgage, or if your financial circumstances change. While the scheme helps many get into a home sooner, it does mean you won’t own 100% of the property unless you eventually buy out the equity share.
Applying for the First Home Scheme is done online. You’ll need documents such as your mortgage approval, payslips, and property details. If approved, the funding is coordinated between your lender, the scheme administrators, and your solicitor. It’s important to understand the long-term implications of shared ownership and to discuss these fully with your solicitor before proceeding.
Affordable Purchase Scheme
The Affordable Purchase Scheme helps buyers purchase new homes at a reduced price. Local authorities develop or support housing developments and then offer properties for sale at below market value. The discount comes in the form of a local authority equity share in your home — similar to the First Home Scheme but managed by your local council.
The scheme is aimed at those who don’t qualify for social housing but still cannot afford to buy a home on the open market. To be eligible, you must be a first-time buyer, or someone in a similar position — such as a person who is separated with no financial interest in a previous property. You must also have a gross household income below a certain level, which varies by location and family size.
The key benefit is the reduced purchase price. For example, if a home is valued at €300,000 but is offered under the scheme for €240,000, the local authority holds a 20% equity share. You own the home and live in it, but you owe a percentage back to the council if you sell or remortgage. There is no interest or charge applied to this equity share, and no repayments are required unless you choose to buy it out.
Properties are allocated based on need, income, and family circumstances. Each local authority operates its own application process, and homes are usually advertised on their website or through approved housing bodies. You’ll need mortgage approval and must be able to cover the reduced price of the property through a mortgage and deposit.
Legal support is essential when buying under this scheme. The equity agreement with the council is a binding contract. Your solicitor will explain the terms, register your ownership, and ensure you fully understand your rights and obligations under the scheme.
Comparing the Schemes: Which One Is Right for You?
While all three schemes aim to support first-time buyers, they operate in different ways. Choosing the right one depends on your income, the type of property you’re buying, and how much support you need. Understanding the key differences is vital before making any decisions.
The Help to Buy Scheme is a tax refund — simple, straightforward, and helpful for boosting your deposit. It doesn’t involve any long-term commitments beyond meeting the eligibility requirements. It’s ideal if you’ve paid enough tax in recent years and are buying a new build.
The First Home Scheme offers a bigger boost but requires a long-term equity share. You won’t own the home outright unless you pay off the government’s share later. It’s best suited for buyers who can get a mortgage but still face a shortfall.
The Affordable Purchase Scheme gives you a discount up front but comes with strict eligibility rules. The local authority owns part of the property until you repay their share. This scheme works well if you meet the income limits and are happy to buy from a designated development.
It’s not possible to use all three schemes together. You can combine Help to Buy with the First Home Scheme, but the Affordable Purchase Scheme must be used on its own. Before deciding, speak with a solicitor or financial advisor who understands how these schemes interact and how they apply to your personal situation.
Other Costs and Considerations for First-Time Buyers
While these schemes provide valuable support, it’s important to be aware of the other costs involved in buying your first home. Legal fees, surveys, valuation reports, Stamp Duty, and moving costs can quickly add up. These expenses are not covered by the schemes and must be budgeted for separately.
You’ll also need a deposit — even with support schemes. While Help to Buy can help cover this, most lenders still expect some of your own savings. Make sure to factor in other expenses like furniture, insurance, and setting up utility bills in your new home.
Having a solicitor involved early makes a big difference. They’ll help you understand your legal rights, explain scheme agreements, and handle the paperwork from start to finish. For first-time buyers, clear legal guidance provides peace of mind during what can be a stressful and unfamiliar process.
CONCLUSION
Buying your first home is a big milestone. While it can feel out of reach for many, government support schemes like Help to Buy, the First Home Scheme, and the Affordable Purchase Scheme are making it more achievable. Each offers different types of assistance — whether it’s a tax refund, equity support, or discounted prices.
Understanding how these schemes work, what you’re eligible for, and what conditions apply is essential before making any commitment. Taking the time to compare your options and seeking professional advice can help you make the best decision for your future.
At Nooney & Dowdall Solicitors, we help first-time buyers every day. If you’re unsure which scheme fits your needs or want help navigating the legal process of buying your first home, contact our team for expert, friendly guidance.
FREQUENTLY ASKED QUESTIONS
1. Can I apply for more than one support scheme at once?
Yes — you can combine the Help to Buy Scheme with the First Home Scheme. However, the Affordable Purchase Scheme cannot be used with the other two.
2. Do I need to pay back the Help to Buy money?
No. The Help to Buy Scheme is a tax refund. It doesn’t need to be repaid as long as you meet the conditions.
3. What happens if I sell my home under the First Home Scheme?
If you sell your home, the government’s equity share must be repaid based on the current value of the property.
4. Are these schemes only for new-build properties?
Yes. All three schemes are intended to support the purchase of newly built homes or self-builds. They do not apply to second-hand properties.
5. How long does it take to get approved for these schemes?
Approval times vary. Help to Buy applications are usually processed within a few weeks. The First Home Scheme and Affordable Purchase Scheme may take longer due to more paperwork and third-party involvement.
